I haven't been on FS long and my first investment just reached its end date (the loan is 1541454825 listed with an end date of 28th April 2017). I expected to receive my capital back on the 28th, but that hasn't happened and there have been no updates on the loan. I have not selected to renew. It is not listed as a renewal for new investors to invest in.
Can someone explain briefly how it works and why my expectation was wrong?
I haven't been on FS long and my first investment just reached its end date (the loan is 1541454825 listed with an end date of 28th April 2017). I expected to receive my capital back on the 28th, but that hasn't happened and there have been no updates on the loan. I have not selected to renew. It is not listed as a renewal for new investors to invest in.
Can someone explain briefly how it works and why my expectation was wrong?
Most loans run past their end date, I have 25 overdue loans.
Very few FS loans repay on the exact expected date. Within a couple of weeks, FS will probably add an update explaining the status of their discussions to date with the Borrower, who may commit to repaying in full or paying 6 months interest so that the loan can be renewed. Some loans take many, many months to resolve. My longest is currently up to 656 days!
IFF the borrower paid the interest to renew the loan again or paid it back in full on Friday THEN I would expect to receive an email once FS settle down again after the bank holiday, maybe today. If they didn't then I would expect hope to see FS chasing them after a week or 2 or 3.
On the plus side, the prior loan on that Plymouth Hotel (2918585401) was renewed via payment of 6 months interest within 2 weeks of the expected end date, which is about as good as it gets on FS
Renewal or repayment on the date the loan ends seems to me to be relatively rare when it's a property loan.
With property loans quite a lot pay or renew within 1 or 2 months and you do get interest when or if the loan is repaid or renewed for the period of the loan.
My experience is that FS are really reluctant to default a property loan but they will quickly default a loan for pawn items that are very saleable ie watches.
P2P lending is high risk and defaults or very late payments are quite common which explains the high interest rates.
Keep your chin up and never invest more than you can afford to lose, spread the risk by only investing small amounts in each loan so if it defaults you don't lose more than you can afford is the best advice I can give to a "newbie".
Im not a newbie to p2p. Just to FS. My first loan here and my first late repayment on any site. Not a good start.
Oh Dear markp2p, welcome to The Club, you've got a lot to experience! (have studiously avoided "learn")
Your next milestone will be your first crystalised loss club. Then there is the nothing recovered club and the 1P recovered club(I kid you not). I'm in all 3
another newbie question then; if the 6 month original loan period comes to the end and the borrower wants to renew by paying another 6 months interest, aren't the original lenders repaid (with interest) and the loan renewed through a new allocation process?
There is an option to "autorenew" or not. I never tick that box.
“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” – Sir John Templeton